Author(s): Adegbola Olubukola Otekunrin, Okonkwo Jisike J, Damilola Felix Eluyela, Okoye Nonso John, Anachedo Chima K, Okonkwo Ebube V, Toluwalase Eniola Awe
This study appraises the role of money supply as a mediator in the association between economic development and inflation in Nigeria using data on broad money supply (M2), inflation rate and real GDP (1981 to 2018) sourced from the CBN statistical bulletin (2019). The ordinary least square regression was used to establish significant associations in order to show the mediating effect of money supply in the inflation-output nexus. The findings revealed that money supply eases the harsh consequences of inflation on the Nigerian economy. The researcher therefore recommends that monetary authorities to collaborate with the fiscal authorities in the formulation and execution of monetary policies in order to ensure strategic injection of funds into key and productive economic with the aim of mitigating the adverse effects of inflation instead of the conventional contractionary monetary policies.